Legal Question : Receive Dash from Masternode Network to fund somebdoy else

Leonidas

Active Member
Oct 22, 2016
395
142
113
Hi guys,

In France law is only about Bitcoin but my guess is that it can be considered the same for Dash. For any earning from mining or masternode's interest, you need to announce them every year during tax time and will be taxed at 34 %.

If I want to be legally compliant, I guess that when I receive a payment from the Masternode Network for a proposal, then I would need to pay those 34 % to the French gov. Pretty straight forward.

But what happens if part of the money I receive is to fund something else (another person salary, a donation, buying stuff, etc.). Obviously I cannot give 34 dashs to the French gov out of 100 dashs received if I use 80 dashs to buy flyers or print.

How does it work in the US (so I can get inspired) ? Is it better to have an official structure that will receive those Dash and then pay whatever needs to be ?
 

ilia_2s

Active Member
Oct 3, 2015
479
158
113
All business have fixed and overhead fees. You can create proposal and post a contract with company that will be incarnate your proposal. You also can post a bill for whole values. Then community asks you to unjumble payments in this bill. Then they found that some overhead fees is too much for this task and will suggest to change jurisdiction of your contractor company to vote YES.
 

Miner237

Well-known Member
Foundation Member
May 28, 2014
515
227
213
Hi guys,

In France law is only about Bitcoin but my guess is that it can be considered the same for Dash. For any earning from mining or masternode's interest, you need to announce them every year during tax time and will be taxed at 34 %.

If I want to be legally compliant, I guess that when I receive a payment from the Masternode Network for a proposal, then I would need to pay those 34 % to the French gov. Pretty straight forward.

But what happens if part of the money I receive is to fund something else (another person salary, a donation, buying stuff, etc.). Obviously I cannot give 34 dashs to the French gov out of 100 dashs received if I use 80 dashs to buy flyers or print.

How does it work in the US (so I can get inspired) ? Is it better to have an official structure that will receive those Dash and then pay whatever needs to be ?
In USA MN reward is considered "mining" or generating CVC and you have to claim it as regular income at the market price when you get the MN block. So if you got the block reward as a MN and DASH was $100 then you add $100 times reward amount and you add this to your normal income which can be taxed between like 10 and 34% depending on your income tax bracket. Then if you sell it for anything more or less than $100 you have capital gains or losses to also report.
 

Leonidas

Active Member
Oct 22, 2016
395
142
113
In USA MN reward is considered "mining" or generating CVC and you have to claim it as regular income at the market price when you get the MN block. So if you got the block reward as a MN and DASH was $100 then you add $100 times reward amount and you add this to your normal income which can be taxed between like 10 and 34% depending on your income tax bracket. Then if you sell it for anything more or less than $100 you have capital gains or losses to also report.
Ok, thanks for the info.
But what about when you receive 2000 $ worth from the Dash Budget System and that you have to use 1500 $ to buy flyers for promotion of Dash (in the hypotetical case that your proposal was to get paid 500 $ and give away 1500$ worth of fliers). Those 1500 $ are at the benefit of the Dash Network, not yours, so should you just take into account the 500 $ of increased income ?
Or should you count 2000 $ as the law, I guess, would just see that you made a profit of 2000 $ of Dash (the fact that you decided to give it away to buy fliers being considered by law as your own individual decision such as you could have used to buy a computer).

How have all the proposers work so far ? Are everyone of them going through whichever company ?
 

Instacoins

Member
May 27, 2017
51
5
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You might need a tax advisor buddy. We are all only speculating and it might be different.

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Leonidas

Active Member
Oct 22, 2016
395
142
113
You might need a tax advisor buddy. We are all only speculating and it might be different.
Might point was to get the advice from the people who already have been all through that.

Pinging for testimonials some from the current and past succesful proposal owner. @Defacto @rion @TrustThyself @PeTrcek @Balt @amanda_b_johnson @rgenito

Hi everybody. I guess many of you had to use the funds that you got from the Budget System for any other thing than paying yourself (i.e. paying other people or buying materials or services needed to complete your proposal), how did you did it on a legal point of view ? Did you go through a company (or any other legal entity) that officialy received the money from the budget system so that to pay able to pay for salaries and goods ?

I think some tips from some of you would be very helpful for anybody who's planning on putting up a proposal !